State may have found source of money

Published: Wednesday, June 5, 2002 at 6:01 a.m.

Last Modified: Tuesday, June 4, 2002 at 11:00 p.m.

Sin taxes - those levied on tobacco and alcohol products -- are popular ideas when it comes to raising revenue.

It's easy to tax alcohol and tobacco because one can argue that since "everyone" knows that using those products are bad for our health, those who use them should be willing to pay more for the privilege. And, politicians often find less resistance to these types of taxes since fewer people smoke now and the nonsmokers tend to support such punitive taxes.

In one light, it does make a little sense to tax tobacco because our state spends more than $1 billion annually treating diseases caused by smoking. Part of the estimated $48 million in revenue which would be generated by the 12-cent tax approved by a Senate committee last week would be spent to fund cancer research and smoking-cessation programs. State Police would also see a salary raise funded by this tax.

But in another spectrum, taxing tobacco is easy - and that's probably why we're falling back on it this legislative session. Lawmakers are looking for ways to plug a $200 million hole in the state budget - and one of those areas needing funding is health care.

But while Louisiana does need tax revenue, this is not the best method of obtaining it. What we need - and this is gaining more and more support from lawmakers - is comprehensive tax reform. Rep. Loulan Pitre Jr., R-Cut Off, has regularly voiced the need for a constitutional convention that would allow lawmakers to cast off the budgetary shackles that protect two-thirds of the general fund from the budget knife - primarily leaving health care and education available for cuts. Just last week, Sen. Bill Jones, D-Ruston, urged lawmakers to put off a bill giving business a tax break until "real tax reform" could take place. It's a nice sentiment, however it's unlikely that holding out for "real tax reform" is the reason the bill was removed from consideration in the Senate. A more likely reason was the sheer pressure from business and its advocates.

We hope more lawmakers continue to voice the need for comprehensive tax reform and a constitutional convention. That's the only way it will become a reality - and the only way our state will really be able to move forward.

<p>Sin taxes - those levied on tobacco and alcohol products -- are popular ideas when it comes to raising revenue.</p><!-- Nothing to do. The paragraph has already been output --><p>It's easy to tax alcohol and tobacco because one can argue that since "everyone" knows that using those products are bad for our health, those who use them should be willing to pay more for the privilege. And, politicians often find less resistance to these types of taxes since fewer people smoke now and the nonsmokers tend to support such punitive taxes.</p><p>In one light, it does make a little sense to tax tobacco because our state spends more than $1 billion annually treating diseases caused by smoking. Part of the estimated $48 million in revenue which would be generated by the 12-cent tax approved by a Senate committee last week would be spent to fund cancer research and smoking-cessation programs. State Police would also see a salary raise funded by this tax.</p><p>But in another spectrum, taxing tobacco is easy - and that's probably why we're falling back on it this legislative session. Lawmakers are looking for ways to plug a $200 million hole in the state budget - and one of those areas needing funding is health care.</p><p>But while Louisiana does need tax revenue, this is not the best method of obtaining it. What we need - and this is gaining more and more support from lawmakers - is comprehensive tax reform. Rep. Loulan Pitre Jr., R-Cut Off, has regularly voiced the need for a constitutional convention that would allow lawmakers to cast off the budgetary shackles that protect two-thirds of the general fund from the budget knife - primarily leaving health care and education available for cuts. Just last week, Sen. Bill Jones, D-Ruston, urged lawmakers to put off a bill giving business a tax break until "real tax reform" could take place. It's a nice sentiment, however it's unlikely that holding out for "real tax reform" is the reason the bill was removed from consideration in the Senate. A more likely reason was the sheer pressure from business and its advocates.</p><p>We hope more lawmakers continue to voice the need for comprehensive tax reform and a constitutional convention. That's the only way it will become a reality - and the only way our state will really be able to move forward.</p>